Posted by BarbaraL_CA on 7/19/09 7:20pm
Msg #296511
New Rules to Protect Borrowers - July 30th
The San Diego Union-Tribune Sunday paper had the following article today regarding new consumer protection rules to protect the borrowers that start July 30th. Thought it might be of interest to you.
http://freepdfhosting.com/279550e051.pdf
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Reply by LkArrowhd/CA on 7/19/09 7:30pm
Msg #296512
Interesting Barbara.
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Reply by MW/VA on 7/19/09 7:40pm
Msg #296513
Thanks. Interesting article. I've seen the new 3-day appraisal disclosure in the last few packages I've done. Of course, they're CYA by having the form that says they received it AND the form that waives the 3-day disclosure. Hmmmmmm.
I would like to see things tighten up. I had two difficult situations last week that are typical in this industry--surprises at the signing table. VA loans at that--borrowers told certain loan amt., certain interest rate, & certain payment. Surprise-surprise--everything higher at table. Then you call the LO and he takes the time to "resell" the loan with the new terms. It's still the same game, and I can see the need to provide the TIL well in advance of the closing.
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Reply by CopperheadVA on 7/19/09 7:56pm
Msg #296521
<< I've seen the new 3-day appraisal disclosure in the last few packages I've done. Of course, they're CYA by having the form that says they received it AND the form that waives the 3-day disclosure. Hmmmmmm. >>
Yes I've seen this, too, in practically every package this month. What's the point of having new rules about anything if the lenders can just put a waiver in the package?
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Reply by JanetK_CA on 7/20/09 1:38am
Msg #296533
When those first starting showing up a few weeks back, I had several where neither was true. The borrowers did, in fact, want a copy, but had not yet received it. Those were fun! I think I did see at least one where they were given a third option (like "yes, I want my copy!" I also had a few where they emailed the appraisal along with the loan docs for me to print out for the borrower. I certainly hope that isn't an increasing trend!!
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Reply by CopperheadVA on 7/20/09 6:31am
Msg #296536
Printing the appraisal
Yeah, I hate when the appraisal is in the package. They are extremely toner-intensive and can be up to 20 pages. I print appraisals in economode, and only print one copy to put into the borrower package, but I don't want it to become the norm that the appraisal is in the package!
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Reply by sue_pa on 7/20/09 10:15am
Msg #296554
Re: Printing the appraisal
I've been printing an average of two appraisals a week for several months. Just because ... it irks me to no end that I must print this. I charge enough fee that it doesn't a/effect me but if I were doing less than $125 e-doc orders, I'd ask for an increase or I wouldn't print it. One more "task" for us at no increased compensation.
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Reply by Lee/AR on 7/20/09 11:31am
Msg #296566
Yeppers...Appraisal is way more than the 5% coverage = mo' $ n/m
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Reply by A S Johnson on 7/19/09 7:43pm
Msg #296515
Questions,
1) is re-finance affected
2) what affect on us, signing agents?
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Reply by PAW on 7/19/09 7:46pm
Msg #296518
1) Yes.
2) Limited. Maybe we'll get acceptable documents more often and the borrowers may not be surprised when we show them the HUD, Note and 1st Payment Letters.
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Reply by A S Johnson on 7/19/09 7:53pm
Msg #296520
Thanks for the reply.
Another, minor question, will this mean we will be collecting more checks at the signing table?
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Reply by PAW on 7/19/09 7:59pm
Msg #296522
My personal opinion is no. I don't see the new rules changing any of the conditions of application, so a borrower would still need to qualify as they do today. Lenders and title companies work pretty hard to minimize having the borrowers bringing funds to close. Even with purchases, there is still the effort to have the borrowers put up enough money (mostly refundable) up front to cover closing costs and other costs as specified in the sales agreement so no additional funds would be needed at closing.
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Reply by PAW on 7/19/09 7:44pm
Msg #296516
The Federal Register about the new 'rules'
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Regulation Z; Docket No. R–1340]
Truth in Lending
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule; official staff commentary.
http://www.federalreserve.gov/reportforms/formsreview/RegZ_20090519_ffr.pdf
The amendments to §§ 226.2(a)(6), 226.17(b) and (f), and 226.19(a)(1); and amendments 13, 14, 16, and 17 to Supplement I to part 226, published on July 30, 2008 (73 FR 44522), previously to become effective on October 1, 2009, are now effective on July 30, 2009.
Additionally, this final rule is also effective on July 30, 2009 and includes further amendments to Regulation Z.
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Reply by BarbaraL_CA on 7/19/09 8:09pm
Msg #296523
Thanks, PAW, for the actual link! n/m
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Reply by OR on 7/19/09 11:03pm
Msg #296530
Re: Thanks, PAW, for the actual link!
Thanks, I too have seen a several the new appraisal form. I have been told that the LO's have already explained it to the borrowers so they sign it. It is nice to know what the new rules are.
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Reply by Teddog/CO on 7/20/09 6:44am
Msg #296537
Barbara and PAW
Thanks for posting all the interesting information.
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